Dollar Tree (NASDAQ:DLTR) Price Target Lowered to $100.00 at Sanford C. Bernstein

Key Points

• Sanford C. Bernstein has lowered Dollar Tree's price target from $109.00 to $100.00, which indicates a potential upside of 11.14% from the stock's previous close.
• Dollar Tree's latest earnings report showed an EPS of $0.77 for the quarter, surpassing estimates and reflecting a 12.3% year-over-year revenue increase.
• The company has initiated a $2.50 billion stock buyback program, signaling management's belief that the stock is undervalued.

Dollar Tree (NASDAQ:DLTR - Get Free Report) had its price target reduced by research analysts at Sanford C. Bernstein from $109.00 to $100.00 in a research note issued on Monday,Benzinga reports. The brokerage presently has a "market perform" rating on the stock. Sanford C. Bernstein's price target would suggest a potential upside of 11.14% from the stock's previous close.

Several other analysts also recently commented on DLTR. Piper Sandler reduced their target price on shares of Dollar Tree from $112.00 to $108.00 and set a "neutral" rating for the company in a report on Thursday, September 4th. Truist Financial boosted their price objective on shares of Dollar Tree from $127.00 to $129.00 and gave the company a "buy" rating in a report on Wednesday, September 3rd. Morgan Stanley boosted their price objective on shares of Dollar Tree from $96.00 to $105.00 and gave the company an "equal weight" rating in a report on Friday, September 5th. Evercore ISI cut their price objective on shares of Dollar Tree from $108.00 to $105.00 and set an "in-line" rating for the company in a report on Tuesday, September 23rd. Finally, Wells Fargo & Company reissued an "overweight" rating on shares of Dollar Tree in a report on Wednesday, September 3rd. Eight analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and four have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and an average price target of $112.35.

Dollar Tree Stock Performance

Shares of DLTR stock opened at $89.98 on Monday. The company has a market capitalization of $18.35 billion, a price-to-earnings ratio of -6.63, a PEG ratio of 1.64 and a beta of 0.85. The company has a debt-to-equity ratio of 0.67, a quick ratio of 0.27 and a current ratio of 1.04. The company has a 50-day simple moving average of $105.61 and a 200 day simple moving average of $95.01. Dollar Tree has a 52 week low of $60.49 and a 52 week high of $118.06.

Dollar Tree (NASDAQ:DLTR - Get Free Report) last announced its earnings results on Wednesday, September 3rd. The company reported $0.77 EPS for the quarter, topping the consensus estimate of $0.38 by $0.39. The business had revenue of $4.57 billion during the quarter, compared to the consensus estimate of $4.46 billion. Dollar Tree had a negative net margin of 13.46% and a positive return on equity of 23.52%. Dollar Tree's revenue was up 12.3% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.67 EPS. Dollar Tree has set its FY 2025 guidance at 5.320-5.720 EPS. On average, sell-side analysts predict that Dollar Tree will post 5.39 earnings per share for the current year.

Dollar Tree declared that its Board of Directors has initiated a stock buyback program on Wednesday, July 9th that authorizes the company to buyback $2.50 billion in outstanding shares. This buyback authorization authorizes the company to purchase up to 11.5% of its shares through open market purchases. Shares buyback programs are typically an indication that the company's leadership believes its shares are undervalued.

Insider Transactions at Dollar Tree

In related news, Director Stephanie Stahl sold 1,185 shares of the stock in a transaction on Friday, September 5th. The shares were sold at an average price of $100.32, for a total transaction of $118,879.20. Following the transaction, the director directly owned 4,089 shares of the company's stock, valued at $410,208.48. This represents a 22.47% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 6.60% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the stock. Price T Rowe Associates Inc. MD lifted its stake in shares of Dollar Tree by 69.6% in the first quarter. Price T Rowe Associates Inc. MD now owns 5,848,196 shares of the company's stock valued at $439,025,000 after buying an additional 2,400,586 shares in the last quarter. Alliancebernstein L.P. lifted its stake in shares of Dollar Tree by 176.9% in the second quarter. Alliancebernstein L.P. now owns 3,746,222 shares of the company's stock valued at $371,026,000 after buying an additional 2,393,172 shares in the last quarter. Alyeska Investment Group L.P. lifted its stake in shares of Dollar Tree by 1,055.1% in the first quarter. Alyeska Investment Group L.P. now owns 2,322,189 shares of the company's stock valued at $174,327,000 after buying an additional 2,121,149 shares in the last quarter. Norges Bank bought a new position in shares of Dollar Tree in the second quarter valued at $185,784,000. Finally, EdgePoint Investment Group Inc. lifted its stake in shares of Dollar Tree by 21.4% in the first quarter. EdgePoint Investment Group Inc. now owns 9,641,507 shares of the company's stock valued at $723,788,000 after buying an additional 1,701,344 shares in the last quarter. 97.40% of the stock is owned by institutional investors.

About Dollar Tree

Dollar Tree, Inc operates retail discount stores. The company operates in two segments, Dollar Tree and Family Dollar. The Dollar Tree segment offers merchandise at the fixed price of $ 1.25. It provides consumable merchandise, which includes everyday consumables, such as household paper and chemicals, food, candy, health, personal care products, and frozen and refrigerated food; variety merchandise comprising toys, durable housewares, gifts, stationery, party goods, greeting cards, softlines, arts and crafts supplies, and other items; and seasonal goods that include Christmas, Easter, Halloween, and Valentine's Day merchandise.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.